As the money supply increases, interest rates _______ and aggregate demand shifts to the _______.
A. Increase; left
B. Increase; right
C. Decrease; left
D. Decrease; right
D. Decrease; right
You might also like to view...
If you were a rational expectations economist, you would argue that the goal for economic policy is to
a. discover the NAIRU and make sure the actual rate of unemployment doesn't fallbelow it b. discover a way to lower unemployment to two percent without inflation c. keep the inflation rate below 10 percent d. maintain inflation at 3 percent and unemployment at 4 percent e. maintain unemployment at 3 percent and inflation at 4 percent
Suppose the government spending multiplier is 1.5. This means that
A) a $1 decline in government spending will raise Real GDP by $1.50. B) a $1 rise in government spending will raise both total spending and Real GDP (assuming prices are constant) by $1.50. C) a $1 rise in government spending will raise investment spending by $1.50. D) a $1 rise in government spending will change interest rates by 1.50 times what it was before the $1 rise in government spending. E) none of the above
When demand increases, in the short run the purely competitive firm:
A. can alter available inputs and output as well as the size of the plant. B. will earn higher profits or experience smaller losses. C. will experience no change in costs as it steps up production. D. will spend more on advertising.
If we tried to pay off the national debt within a few years we would definitely have a _____.
Fill in the blank(s) with the appropriate word(s).